DJI closed higher over the week where it bounce back above the resistant of the thick blue line and manage to stay above it. This had cancel off the bearish signal as well as cancel off the perfect setting for short sellers. Looking at the daily chart, it seems like it has yet to choose its direction.
Something important and need to monitor closely is that the index has to stay above the thick blue line to remain bullishness. Falling below it will cancel off the up trending pace, and might turn out to be a short selling point. Another point to note is the gap up on 18/5, sealing the gap will too cancel the gap up bullish effect.
Support: 1. 24242 2. 24059 3. 24000
Resistant: 1. 24598 2. 24805 3. 25192
For the weekly chart, the candle shows that it is now back above the crucial thick blue supporting line and something worth noting is that the candle had finally close at recent high. Its important to monitor if the candle could stay above the thick blue supporting line in order to remain its uptrend.
SP500 is showing resilient by closing at its highest since the tumble in March. SP500 gap up and break the resistant of the thick blue line and manage to trend higher and break the resistant of the 61.8% Fibo retracement follow by the monthly line 2944 and close above all these 3 resistant.
It is important for SP500 to stay above all these support in order to remain bullish.
Support: 1. 2944 2. 2935 3. 2912
Resistant: 1. 2978 2. 3000 3. 3100
SP500 weekly chart looks good where it finally break the resistant of 61.8% and monthly resistant of 2944. However, the candle shows that there are strong selling pressure on top of the resistant level. Something important to monitor is that SP500 will have to stay above the thick blue line in order to remain bullishness.
Nasdaq too doing well this week where it gap up and break the resistant on 78.6% and manage to stay above it. Something quite fun to see is that the index had challenge the red line resistant again and fail to break it, this shows that the red line resistant is really a very strong resistant with lots of selling pressure. It is also worth noting that Nasdaq is now just 500 points away from its peak.
Though we are near to the peak, something important to monitor is that can the index stay above the 78.6 retracement level and the gap up bullish signal. This is important indicator to show that Nasdaq is still strong.
Support: 1. 9168 2. 9007 3. 8903
Resistant: 1. 9382 2. 9400 (red line) 3. 9576
We can see that it’s a V shape for Nasdaq and it closed highest since March, this is a very strong chart. However, the steepness of the chart is impressive, but please don’t get carry away and always be cautious on any possible turn.
Disclaimer: The materials shown above is just for education purposes. No buy or sell calls are intended. Please consult your brokers for investment decisions. The author above will not be responsible for any trading decision and action taken by the readers.